01.03.2026 23:32
As tensions escalate between the US, Israel, and Iran, a noteworthy statement has come from the Central Bank. The Central Bank announced that it has decided to suspend one-week repo auctions.
The Central Bank of the Republic of Turkey has suspended one-week term repo auctions.
ONE-WEEK TERM REPO AUCTIONS SUSPENDED
In a period when conflicts between the USA, Israel, and Iran continue, a striking measure has come from the Central Bank of the Republic of Turkey. The Central Bank announced that it has suspended one-week term repo auctions.
WHAT DOES THIS STEP BY THE CENTRAL BANK MEAN?
The suspension of one-week term repo auctions by the Central Bank of the Republic of Turkey (CBRT) is a tightening monetary policy move aimed at directly reducing the Turkish lira liquidity in the market. Under normal circumstances, banks obtain the funding they need through the policy interest rate (one-week term repo), which is the lowest cost channel. The cancellation of these auctions means that banks will lose access to this cheap source and will be directed to more expensive upper corridor channels such as the Late Liquidity Window or Overnight Lending.
The main aim of this situation is to protect the value of the Turkish lira by withdrawing excess money circulating in the market and to break inflationary pressures. Banks facing increased funding costs will have to reflect this cost increase in loan interest rates; this will slow down credit expansion in the market and restrain consumption. In summary, this move is a covert method of raising interest rates used by the Central Bank to increase the effective interest rate in the market (Weighted Average Funding Cost) without changing the official policy interest rate.
DENIAL OF THE CLAIM THAT "ISTANBUL STOCK EXCHANGE WILL BE CLOSED"
On the other hand, claims regarding the evaluation of closing the Istanbul Stock Exchange on Monday had caused a wide reaction in the public. A denial regarding the news that appeared in some media outlets came from the Communication Presidency's Disinformation Combat Center.
In the statement, it was said, "Some social media accounts are circulating claims that 'the evaluation of closing the Istanbul Stock Exchange on Monday or a decision in this direction is being considered.' There is no decision taken or under evaluation regarding this matter by the authorized institutions."
“THEY WANT TO HARM ECONOMIC STABILITY”
DMM emphasized that the mentioned shares are a clear manipulation attempt aimed at creating panic and insecurity in the markets. The statement noted that necessary legal processes have been initiated regarding these baseless shares that aim to harm economic stability.